China Committed to Russian Gas Project

WorldEnergyNews.com
Wednesday, April 30, 2014
Image courtesy Novatek

Chinese investors are committed to financing part of Novatek's $27 billion Russian gas project, ensuring it has sufficient backing despite losing U.S. support because of sanctions, the company said on Wednesday.

Russian corporate bond and loan issuance this year has languished on lenders' concern over becoming caught up in U.S. and EU sanctions imposed on Russian individuals in retaliation for Moscow's annexation of Crimea and support for separatists in eastern Ukraine.

But the scramble for funds is driving businesses to Asia, where cash-rich investors and governments are less critical of the Kremlin's actions.

"You are seeing a swing from where these big debt sources might have been to where they may move," one Moscow-based adviser said. "I think there will be a lot of conversations and travel between Moscow and Beijing - a more open dialogue."

Novatek's Yamal liquefied natural gas (LNG) project is being developed in partnership with France's Total and China National Petroleum Corp (CNPC).

The project recently lost U.S. export credit agency Ex-Im Bank as a sponsor after sanctions were imposed, Novatek said. Ex-Im, which has about $1.7 billion of exposure to Russia, said it suspended consideration of the Yamal LNG application in March.

Among the individuals on the U.S. list of people subject to asset freezes and visa bans is Novatek shareholder and billionaire businessman Gennady Timchenko, an ally of Russian President Vladimir Putin. Timchenko owns 23 percent of Novatek via his investment vehicle Volga Resources, which is also subject to U.S. sanctions.

"Adequate Support"
"We believe that there is adequate financial support for the Yamal LNG project from the remaining export credit agencies, as well as positive comments from Chinese financial institutions regarding their commitment to provide a substantial portion of the total financing package," Novatek Chief Financial Officer Mark Gyetvay said in a conference call.

CNPC and a consortium of Chinese banks signed a memorandum on project financing for the Yamal project in September.

China Development Bank Corporation, Industrial and Commercial Bank of China, Bank of China and China Construction Bank were considering actively participating in the external project financing transaction, Novatek said at the time.

"Our work activities relating to the Yamal LNG project are proceeding as planned," said Gyetvay. "We continue to hold constructive discussions with the international banking community, including export credit agencies."

Yamal LNG is slated to start production in 2017, targeting output of 16.5 million tonnes of LNG a year by 2020.

The $27 billion project is key for Russia's aim to double its global LNG market share to 10 percent by the end of the decade and will help Moscow in its efforts to diversify energy supplies away from Europe to Asia.

(By Megan Davies and Vladimir Soldatkin; Editing by David Goodman)

Maritime Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Meyer Turku Wins TUI Cruises Order for 2 Ships

TUI Cruises GmbH and Meyer Turku Oy signed an agreement for two cruise ships. This order further strengthens the order book of the shipyard, which contains now a high work load until the year 2020.

Oranjewerf Ship Repair becomes Damen Shiprepair Oranjewerf

On 1 July 2015, Oranjewerf Ship Repair, which joined Damen Shipyards Group in 1989, will officially change its name to Damen Shiprepair Oranjewerf. This name

Shell Steps Closer to Arctic Drilling

The U.S. Fish and Wildlife Service authorized the nonlethal, incidental, and unintentional take of small numbers of polar bears and Pacific walrus that result

Finance

Transnet Awards Bid for Cape Town Cruise Terminal

Transnet National Ports Authority awarded the V&A Waterfront (Pty) Ltd the status of Preferred Bidder for the development of a cruise terminal at the Port of Cape Town, Transnet said on Tuesday.

Samsung Bags $4.7bn Order for 3 FLNG from Shell Gas

South Korean shipbuilder Samsung Heavy Industries Co. as won a 5.2 trillion won (US$4.7 billion) order to build three floating liquefied natural gas (FLNG) facilities, reports Yonhap.

FLEX Acquires LNG Assets from EXMAR

Nicolas Saverys-led Exmar has agreed to integrate its LNG assets and infrastructure with those of John Fredriksen’s Geveran and Flex LNG under a new USD 2.3 billion company – Exmar LNG Ltd.

Energy

Shell Steps Closer to Arctic Drilling

The U.S. Fish and Wildlife Service authorized the nonlethal, incidental, and unintentional take of small numbers of polar bears and Pacific walrus that result

Monopiles Terminal to Be Built in Rotterdam

Sif and Verbrugge to build terminal for offshore wind energy on Maasvlakte 2   Sif Group, Verbrugge International and the Port of Rotterdam Authority have signed

Ex-BP Engineer Deserves New Gulf Spill Trial -US Appeals Court

A former BP Plc engineer deserves a new trial on an obstruction of justice charge related to the 2010 Gulf of Mexico oil spill, a federal appeals court ruled on Tuesday.

LNG

FLEX Acquires LNG Assets from EXMAR

Nicolas Saverys-led Exmar has agreed to integrate its LNG assets and infrastructure with those of John Fredriksen’s Geveran and Flex LNG under a new USD 2.3 billion company – Exmar LNG Ltd.

Tanker Converted to LNG-electric Propulsion

Bergen Tankers’ 95-meter-long chemical and product tanker Bergen Viking has returned to service following its conversion from diesel-electric to liquefied natural gas (LNG)-electric propulsion.

Cheniere’s Maiden LNG Spot Deal At $7.20/MMBtu

Cheniere concluded its maiden LNG spot trade earlier this week at for late-July delivery to an Asian buyer, reports Platts quoting a source with direct knowledge of the deal.

News

Meyer Turku Wins TUI Cruises Order for 2 Ships

TUI Cruises GmbH and Meyer Turku Oy signed an agreement for two cruise ships. This order further strengthens the order book of the shipyard, which contains now a high work load until the year 2020.

Oranjewerf Ship Repair becomes Damen Shiprepair Oranjewerf

On 1 July 2015, Oranjewerf Ship Repair, which joined Damen Shipyards Group in 1989, will officially change its name to Damen Shiprepair Oranjewerf. This name

Shell Steps Closer to Arctic Drilling

The U.S. Fish and Wildlife Service authorized the nonlethal, incidental, and unintentional take of small numbers of polar bears and Pacific walrus that result

Government Update

Monopiles Terminal to Be Built in Rotterdam

Sif and Verbrugge to build terminal for offshore wind energy on Maasvlakte 2   Sif Group, Verbrugge International and the Port of Rotterdam Authority have signed

US Issues Potential Setback to Shell's Arctic Drilling

The Obama administration issued a potential setback to Royal Dutch Shell's  Arctic oil exploration plans on Tuesday, telling the company that established wildlife

Ex-BP Engineer Deserves New Gulf Spill Trial -US Appeals Court

A former BP Plc engineer deserves a new trial on an obstruction of justice charge related to the 2010 Gulf of Mexico oil spill, a federal appeals court ruled on Tuesday.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Pod Propulsion Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2072 sec (5 req/sec)